https://www.barrons.com/articles/th...notice to,now gaining popularity for payments. Yes, not to be outdone by the Chinese who is creating a digital yuan that some say is the biggest threat to the west: https://www.morningstar.com/news/ma...in-past-30-or-40-years-according-to-kyle-bass The Fed is now getting serious in creating a digital dollar. So now not only that the money is not backed up by anything but now it won't even exist in physical forms. With a click of a button or a press of an "Enter" key, all the money that you have can have an instant value of zero or a million via instant monetary policy!! Money will no longer be affected by nor a reflection of economic factors such as productivity, interest rate, trade policy. It can have whatever value it wants and anybody who trades with us will have to be forced to adopt our monetary and economic policy, of course just like before, but now even more so. Soon every single country will want to create its own digital currency imprinted with its own economic policy and political, social, psychological and religious aspiration reflecting perhaps its own values and cultures and whatever historical baggage that it wants to carry. And the whole marketplace will just be a battle place to see who can outfake the other with their fake err digital currency. China contributed to the world with its four inventions. Count this as their fifth. Let the battle of fake err digital currencies begin!!
More Great Reset mantra, removing cash, all transactions tracked everything you buy judged for CO2 useage and your social credit score. By 2025 you might aswell be living in China.
It means the 2 billion unbanked can use it by downloading an app. Otherwise they will use the digital yuan.
Flabbergasted by how misinformed this view is. Only about 10% of annual gdp is available in physical currency (there is literally less than $3t in printed money). The Federal Reserve already creates digital assets through reserves (which exist digitally lol). Digitizing the dollar just means there will be a centralized node for clearing, just like there already is for most other financial assets. It makes sense for sovereigns to digitize their currencies because it simplifies the exchange process. Right now it is expensive for banks/processors/consumers to clear (takes a few days, even wires take some time). This reduces costs and improves the competitiveness of a currency (what people use to pay other people for things). @JSOP I recommend reading through a money, banking, and international trade chapter in nearly any macro 101 textbook. What effects the value of a currency is relative demand (economic activity) and supply (rates). Furthermore, commodity backed currencies like “petro-dollars” or gold, are not tied to things like productivity and economic activity at all. Gold supply was what caused wars, and oil production is like money printing but in the millions of barrels per day lol.
Where did you come up with this figure 10%? Do you have any evidence to explain and back this? Just curious. Which ones? Again curious. That may be true but it still does not preclude the fact that digital currencies also makes it easier and more instant for the government to implement its monetary and economic policies. No the value of the currency is still affected by its productivity or I should say relative productivity and its monetary policy which in turn determines the relative demand/supply for them. And rates is NOT the supply. Exchange rates is determined by the relative demand/supply of a currency vs. another. Backing money by gold, NOT "gold supply" just eliminates or reduces the multiplier effect from the growth/shrinkage of money supply and has nothing to do with wars or oil production. You need to read more. What you wrote is not even funny for a troll.
Eh, I don't even see the first 4 posts. Anyway, about 98% of the dollars only exist on computers and servers and bank ledgers, but not in physical form. I know, news flash...OP should catch up.
Just because you don't hold the money in your hand or hide it under your mattress doesn't mean it's actually digital. Digital currency is a totally new concept. You guys should really read about it.